What was the face amount of the note payable with a bank for Bambu in 2023?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | |
|---|---|---|
| Note payable with a bank. Face Amount $179,970, interest | 179,970 | |
| at 8.25% per year, payment in 84 installments of $2,838. | ||
| Collateralized by the assets of the Company and the | ||
| personal guaranty of the managing member of the | ||
| Company. |
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, in 2023, the face amount of the note payable with a bank was $179,970. This note carried an interest rate of 8.25% per year, with payments structured in 84 installments of $2,838.
The note was collateralized by the assets of the company and further secured by the personal guarantee of the managing member of Bambu. This indicates that the bank lending to Bambu had a secured interest in the company's assets and a personal guarantee from the managing member, providing them with recourse in case of default.
For a prospective franchisee, this information provides insight into the financial obligations and debt structure of Bambu. Understanding the franchisor's financial health and obligations can be crucial in assessing the stability and reliability of the franchise system. It is common for franchisors to have debts, but the terms and collateralization of these debts can indicate the level of financial risk involved.